I’m an elementary school teacher and as June draws to a close I battle with two feelings. I can’t wait for the break after another busy year but I also feel guilty that I haven’t set aside the money. I know that I’ll have a big credit card bill by September. I don’t spend extravagantly but day to day life catches up after two months of no pay cheque. I’m paid over ten months of the year – September to June and still can’t get it together to be prepared for the summer pay cheque drought!

Trying to Graduate to the Next Grade in $

Dear Trying to Graduate to the Next Grade in $,

You’re not alone in the challenge of budgeting over the full year when you’re paid a full salary over ten months. There are two parts to this problem:

1. Basic Budgeting: Know the total amount of your monthly expenses (rent, food, transportation, entertainment, insurance, debt repayment and savings)2. Cash Flow:a) Convert your ten month net income to annual net income (take a typical month, multiple by 10 and divide by 12)b) Ask your school if they have a payroll program to smooth your ten month income over twelvec) If they don’t…set up a ten month forced savings (talk to your bank) so you have the money for July and August

It’s not as big of a problem as you imagine! Take control of your money and you can finish the summer with a smile.